Monday July 27, 2026
Utah community associations are navigating several important legislative updates in 2026. While the changes vary in scope, the overall focus is clear: greater transparency, stronger financial planning, improved access to information and more consistent governance.Most of the key association-related changes took effect on May 6, 2026. While not every bill applies to every community in the same way, understanding these updates can help boards stay compliant, build trust and operate more effectively.
The HOA ombudsman office is becoming a valuable resource
The Office of the Homeowners' Association Ombudsman, created in 2025 through House Bill 217, continues to play a larger role in supporting Utah community associations. The office maintains the state's HOA registry that provides educational resources and helps boards and homeowners better understand Utah HOA laws.In 2026, Senate Bill 122 expanded the office's role by making advisory opinions publicly available and increasing access to educational resources. While the ombudsman can provide guidance on state law, it does not replace legal counsel.
What boards can do now:
- Confirm your association's registration information with the state is accurate and up to date.
- Familiarize board members with the resources available through the Ombudsman Office.
- Share those resources with homeowners to help improve transparency and understanding.
- Continue working with qualified legal counsel when interpreting governing documents or addressing complex legal issues.
Some community rules may need a second look
SB 122 reinforces and expands protections for certain homeowner rights, meaning some older rules may no longer be enforceable.The law impacts areas such as political signs and flags, for-sale signs, water-wise landscaping, security cameras, parking and contractor choice. Condominium associations also receive additional guidance related to unit use and ownership transfers.
The key takeaway is that just because a rule exists in your governing documents does not necessarily mean it is still valid under current law. Communities with older documents may be especially impacted.
What boards can do now:
- Review your governing documents, rules and architectural guidelines with legal counsel.
- Identify any policies that may conflict with current Utah law.
- Update outdated language and enforcement procedures where needed.
- Communicate any significant changes to homeowners so expectations remain clear and consistent.
Budgeting, records, and association information get more structure
Several provisions in SB 122 are designed to improve accountability and transparency.The law clarifies budget procedures and allows a previous year's budget to remain in effect until a new one is adopted. It also strengthens homeowners' access to association records by generally requiring responses to records requests within 10 business days.
Additionally, association records, governing documents and funds are clearly defined as association property, helping support smoother transitions during board or management changes.
What boards can do now:
- Review your records request process so requests are handled promptly and consistently.
- Organize and centralize important association documents and financial records.
- Confirm that board members and management partners know where official records are stored and who has access to them.
- Review budget planning procedures to keep the association prepared for annual budget discussions and approvals.
- Consider using a secure digital platform or resident portal to make records easier to manage and share when appropriate.
Reinvestment fees and reserves: Planning for the future
House Bill 306 updates how associations can manage reinvestment fees collected during property transfers. The law is intended to support long-term financial planning and major repair projects.For most associations, at least 50% of reinvestment fees collected must be deposited into reserve funds. The law also places limits on how much associations can charge, with some exceptions for large master-planned communities.
These changes align with industry best practices that encourage reserve funding and long-term capital planning.
What boards can do now:
- Review whether your association charges reinvestment fees and confirm those fees comply with the new requirements.
- Oversee that reserve contributions are being properly tracked and documented.
Transfer fees, liens, and common areas: What boards should know
Several 2026 updates focus on fees, property records and common areas.Under SB 122, what many associations previously called a transfer fee is now referred to as an administrative setup fee. The fee may only be used for costs directly related to processing a property transfer.
Senate Bill 196 adds protections against certain outdated or invalid transfer fee claims, while House Bill 77 clarifies how ownership interests in common areas such as parks, open space and clubhouses are recognized for property tax purposes. State officials have emphasized that HB 77 is a clarification of existing law, not a new tax.
What boards can do now:
- Review any transfer or administrative setup fees to confirm alignment with the new requirements.
- Work with legal counsel to verify that any transfer fee-related documents or recorded notices remain valid and enforceable.
- Confirm that your management company provides clear accounting for any fees collected on the association's behalf.
- Update policies and homeowner communications as needed to reflect current Utah law and fee practices.
Wildfire-related landscaping gets a specific update
As wildfire risk continues to grow across parts of Utah, House Bill 215 gives homeowners in certain high-risk areas more flexibility to remove vegetation from their property to help reduce fire danger.Under the new law, associations generally cannot prohibit a homeowner from removing vegetation if the property is located within a designated wildland-urban interface area, which is where developed neighborhoods meet undeveloped land that may be vulnerable to wildfire.
What boards can do now:
- Review landscaping and architectural guidelines so they comply with the new law.
- Determine whether any portion of the community is located within a designated wildland-urban interface area.
- Consult local fire officials or wildfire prevention resources for guidance on vegetation management and defensible space recommendations.
- Communicate any rule updates or landscaping considerations to homeowners so expectations are clear.
What boards should do next
The 2026 legislative changes are a good reminder for boards to take a fresh look at their community's policies, finances and communication practices.Start by reviewing governing documents for alignment with current Utah law. Next, evaluate reserve funding, fee practices and budget procedures. Finally, confirm records are organized and homeowners have access to important information.
Clear communication is equally important. Residents do not need every legal detail, but they should understand what is changing and how it may affect the community.
FirstService Residential works with community association boards including large-scale master-planned developments, high-rise buildings, single-family home communities, condominium and active adult associations. If your board is reviewing its governing documents, financial practices, records process or resident communications, FirstService can help you organize next steps and support a more confident path forward.
Staying current with Utah HOA laws is about more than compliance. It’s an opportunity to build trust, improve transparency and help your community prepare for the future.
Contact us today to learn more.
This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.